04 December 2024 
Amanda Darley, Head of Operations and Engagement
In September 2024 USS issued a letter to institutions to support preparation of financial statement disclosures, titled “FRS 102 Section 28 Post-employment Benefits: Disclosure in employers’ individual financial statements”. The Annex to the letter contained an incorrect disclosure in relation to the CPI assumption, which was inconsistent with the 2024 Universities Superannuation Scheme (USS) Annual Report and Accounts (ARA).
The correct CPI disclosure should read as follows:
Principal Actuarial Assumptions | 31 March 2023 valuation - technical provisions |
Price inflation - Consumer Prices Index (CPI) | 3.0% p.a. (based on a long-term average expected level of CPI, broadly consistent with long-term market expectations) |
RPI/CPI gap | 1.0% p.a. to 2030, reducing to 0.1% p.a. from 2030 |
The following disclosure in the Annex to the letter was therefore incorrect and should be disregarded:
CPI assumption | Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030 |
USS will be writing to institutions directly in due course to advise of this correction, however in the interests of expedience the correction is also included here.
